Starting next year, local government units (LGUs) will receive 35% of national taxes as the earmarking of incremental revenues under the TRAIN Law expires, according to the Department of Finance (DOF).
Finance Secretary Ralph Recto confirmed the increase from the current 32%, emphasizing that the allocation follows the 2019 Mandanas-Garcia Supreme Court ruling.
Recto assured transparency in the computation, which accounts for deductions like earmarked funds and allocations for the Bangsamoro region.
The DOF has resolved 99% of LGU concerns, with Recto recently meeting mayors from Quezon City, Baguio, and Dumaguete to address issues.
The Supreme Court ruling, which expanded LGU shares to 40% of national taxes, aims to ensure fair distribution while adhering to constitutional guidelines.
Source: PhilNews24 | January 17, 2025
